Trading And Investment

Share market is a place where everyone joins it to make profit and several of them end up in losses.There are many reasons due to which loss happens in market.Market is nothing but it is just the predictions,one who predicts well fetches the result in profit on the another hand one whose predictions are wrong end up in losses.Many of the losses occurs due to greediness and emotions.Some of the losses becomes huge because of not placing SL. There can be several other factors like getting suggestion from wrong advisors or brokers.Many of them loose because they want to make money in free of cost calls but forget this fact that nothing in this world comes free of cost.Poison which kills human being also require money to be purchased. There are two kind of risk associated in the market: 1.Systematic Risk 2.Unsystematic Risk Systematic risk is uncontrollable and Unsystematic risk in controllable.So with every trade there is always a risk involved there is nothing in this market which i...

Trading and Investment are two different things done in market. Investment is done for creating wealth by accumulating different stocks in your portfolio for a long term view.Investment can be diversified in different stocks to balance one’s portfolio.There is no any rule of selecting no. of stocks for one portfolio and there can be n number of stocks in one portfolio but having many shares may create difficulties in tracking portfolio.So a limited number of stocks should be there may be around 15.The portfolio should be diversified in different segment of market and also it should be reviewed on every quarter basis.Remember there is no any need to track your portfolio stocks on daily basis otherwise it will create panic in your mind.The selection of stocks should be only done on the basis of fundamental analysis.Entry and exit in a particular stock can also be tracked with the help of technical analysis. Trading on the another hand is done for making some money in short term or...

As nifty hit today 10k everyone celebrated it with great enthusiasm then suddenly after 10 minutes of market it bleeded red.The celebration continued and stories of nifty continued to be shown on some blue channels.I am very much sure that many of traders are still stuck at higher zone( view is only intraday ) and many of them are holding nifty by shorting it and expecting a crash in the market. Both the case is of greed but with a different view on market.As we enter into a trade greed comes in hand to hand in it to earn handsome amount of money and many a times after booking profit or loss if the stock moves in another direction where our profit was probably due we always regret our decision and next time when we trade we enters with more greed.Now if this trade also goes wrong we don’t book loss either we give reference to our previous trade where after booking loss stock moved in that direction where we were expecting.Ultimately our loss increases and a time comes when we are f...

I have been in this market for many years and seen lots of things happening around but recently I have seen a sharp surged in free stock ideas and some advertisement like earn 3000 per day and many more as such. Although I am not denying the fact that it is not possible to earn from this market but earning money from this market is not an easy task.There are number of analyst available and all are providing recommendation.Every one is shouting and probably share market is turning into a fish market.But in fish market at least you will be able to analyse the quality of fish what you are going to purchase. The lucrative advertisement with image of some girls posting this looks like a trap to me in many of the cases.I am not telling that all are wrong but many of them looks fake and are trying to trap a naive investors.Everyone should be aware of all these attractive advertisement and should be cautious before taking any step. Earning money from any source has never been easy and i...

The word safe itself creates a sense of security and looks very much interesting if it is combined with the word “Share Market”. Everyone in this world want money at least to complete his banal needs but it is required to keep a pace with inflation or investment must beat inflation. Now comes the “safe” word which can only be considered with investment like FDs,RDs,PPF( many of them gives negative return if we compare it with inflation ) and many saving schemes of government can be termed as safe but if we want to view share market from spectacle of safe word every thing will get blurred. Nothing in this market can be termed safe either it is mutual fund or bonds.So if anyone want guaranteed return then Share Market is not for them.Analysis done before investing can reduce risk but it can’t be zero.There is always a risk involved but if you want an exponential return then this is the only place where it can be done conveniently. We all have heard a punch line “Dar k aage jeet h”...

Intraday trading is all about timing the market. Entry and exit should be proper and a strict SL( Stop loss ) is mandatory. One should not become greedy. This means you have to exit at target and stop loss. Risk management analysis should be done before entering in a trade. Churning should be strictly avoided and one should always enter in those stocks in which impact cost is less. Impact cost is related to market liquidity and I have heard many of traders got trapped at higher level and is not able to sell their stocks because no one is available as buyer and stock is on lower circuit on per day basis. Leverage trading should be avoided or it should be done after analysing the risk reward ratio. Many of traders asks intraday trading is a gamble but one always has to remember this if you are playing as a gambler then only game will become a gamble. If you have realised the risk reward and also you know your limit of taking risk then it is a fair play. Make your guns ready b...

Today a new history has been made by NSE(National Stock Exchange) it was not working for more than three hours in morning session. The reason behind this failure was due to technical issue. The trading time was reduced ultimately because of this stupid reason and no one is responsible for this mistake. The loss occurred to trader and investor is ultimately will be bombarded on GOD and all will accept it as a fate to them self, may be some one will start  blaming market that it is a gamble. All are correct and I am standing on the side of traders and investors but I am very much disappointed because we are viewing a NEW INDIA through eye of our Prime minister and probably we are in a digital INDIA zone. All these things which are being claimed looks jaw less mouth and we have to move a way ahead in many horizons. Although these kind of activities can also be seen in many markets which are developed but it doesn't mean that we should follow the same suit. There is one proverb ...

Are we heading towards a war? After seeing the current situation in Arunachal Pradesh standoff between India and China is looking quite serious. China is looking very much stiff on his stand and several reports in Chinese media is suggesting some threatening dialogues to India. China has also increased it’s presence in Indian ocean and if we look back making ports near Bangladesh, Sri lanka and Pakistan can be seen as china’s diplomacy which is a serious cause of concern for India. Although Indian navy is taking a close look at it and announced that it is a routine from china. On the another hand Pakistan stand on Kashmir and it’s impact on Kashmir situation is not hidden from any one. On every day a rift between militants and Indian army can be viewed on every news channel. Further cross border terrorism and ceasefire violation is a news which almost all Indians has predigested and now it doesn’t creates much of an impact on many of us. Narendra Modi diplomacy can be a g...